On this new Wednesday digital block, let’s take a look at a cryptocurrency that is currently in the top 25 of the most important assets in the ecosystem: payment protocol XLM, Stellar. Development for several years, of course struggling. However, will he be able to bounce back and overcome certain technical levels? Without further ado, let’s jump right into TradingView to identify the areas to watch and the bias that will be needed over the next few weeks.
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Weekly pivot zone about to give way?
First of all, we can look at the price situation on the weekly scale for that Take a step back on fluctuating prices xlm over the past few months. After creating a The all-time high is $0.798the asset was not able to return to similar levels, even at the end of 2021. For more than a year, it was unable to break free from the triple EMA which is a strong bearish momentum.
From now on, XLM is located in A A pivot area between $0.083 and $0.089. Previously, during the years 2019 and 2020, It was a great resistance Which course has been repeatedly rejected. Over the next few weeks, we will have to keep our eyes on the pivot zone to see if XLM is able to rebound strongly to avoid a new bearish waterfall.
If it is unable to stay above this area, the The next technical level Where the asset address should be located at $0.0583. During 2020, the price rebounded several times at this level before heading to higher price levels. For bullish targets, we can see that the first dynamic resistance is at $0.105, which is EMA13. For the sake of accuracy, let’s go on a smaller time scale to create additional technical levels.
What are the levels to resume to work for a bullish reversal?
In this date range, we can use profile size In order to identify the levels that XLM can react to in the event of a sharp retracement in the current pivot zone. Besides the triple EMA with the 13 EMA just above the price action, there is a 25 and a 32 EMA at $0.096/$0.098 that XLM will need to break higher. If he succeeds, he will head in a direction The technical level is at $0.106 Where the MA100 approaches. this is area at confluence With the weekly EMA13, which reinforces the importance of this technical level.
XLM would need to clear this technical confluence with a close above $0.106 to head lower. control point. The PoC It is the last technical level before returning to its weekly resistance The value region is low for the volume profile In addition to EMA200. If XLM is pushed back to that level over the next few weeks, it will be necessary to see whether or not it will be able to shake it off to enter some sort of bullish momentum over the longer term.
Here we are at the end of the cryptocurrency block on Wednesday! As you can see with the specific technicals, the bias in XLM is rather bearish. However, expecting a bearish breakout of the pivot zone is not the best thing to do. Let’s wait for confirmations and watch The evolution of the US dollar To see if the market has set a local low point or if it will continue to fall over the next few weeks. For a possible bounce, the levels have been identified, it will be necessary to be careful and watch the price reaction at the first levels to determine the strength of the buyers against the sellers.
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